The New Jersey Economic Development Authority (NJEDA) recently announced that cannabis grants of $75,000 are still available for limited business applicants.
They come from their Cannabis Business Development (CBD) Grant Program.
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The pilot program is offering $75,000 reimbursements to eligible cannabis manufacturers, cultivators, dispensaries, and testing laboratories in New Jersey.
According to them, $5 million in funding has already been disbursed through the program. They did not specify who received the money in their release.
NJEDA Grant Program
According to the EDA, the CBD Grant Program is designed to provide targeted financial support to eligible recreational cannabis entrepreneurs in New Jersey. The program will grant companies $75,000 to help alleviate and manage the cost of ongoing State and local compliance, as well as operating expenses, for early-stage companies.
Five percent of funding will be made available for businesses operating in New Jersey Cannabis Regulatory Commission (NJCRC) designated Impact Zones. It’s supposed to stimulate economic development in historically underserved areas. These zones* are designated by the NJCRC on factors such as past cannabis arrests, law enforcement activity, unemployment, and population.
Limited Eligibility for NJ Cannabis Grants
To be eligible for the CBD Grant Program, a business must possess a current NJCRC annual license in one of the following categories:
- Class 1 (Cultivator)
- Class 2 (Manufacturer)
- Class 5 (Retailer)
- Testing Laboratory
To qualify for the CBD Grant Program, applicants must also submit at least $75,000 in eligible expenses with supporting documentation and proof of payment.
In addition, applicants must be in substantial good standing with the NJCRC, the NJ Department of Labor and Workforce Development, and the New Jersey Department of Environmental Protection.
Furthermore, applicants must provide a current tax clearance certificate to demonstrate the applicant is in substantial good standing with the New Jersey Division of Taxation.
Previously awarded NJEDA Cannabis grant winners are also not eligible.
In addition, medical license holders for an Alternative Treatment Center (ATC) who converted to adult-use cannabis sales.
They also explicitly said Multi-State Operators (MSOs) are not eligible. MSOs are defined as cannabis companies with operations in multiple states.
Unfortunately, Heady NJ found that some previous NJEDA grant winners were operating in other states first and then came here.
Eligible Expenses for NJ Cannabis Grant Applicants
According to them, eligible expenses include:
- “Rental expenses (including common area maintenance (CAM) charges), as evidenced by a fully executed lease signed by both the landlord and the tenant (the named tenant must be the applicant or a related entity to the applicant) that has commenced. Sub-leases are ineligible.
- Payroll Expenses.
- Employee training expenses related to the cost to train employees or independent contractors for any function of their business operations.
- Professional Services which must be invoiced and/or addressed to the applicant entity listed on the application.
According to them, that “may include but are not limited to legal services, legal services related to the NJCRC license and regulatory process, accounting services, human resources services, business planning, transportation services, security, marketing or branding services, website development, or lab services and any other outside services that may be needed to operate an eligible cannabis business in NJ or obtain/maintain any license or authorization to operate from the NJ CRC.”
“All expenses and associated supporting documentation are subject to NJEDA review and discretion. Applicants must provide documentation to verify expenses with proof of payment, such as canceled checks, credit card statements, or bank statements for cash payments.”
“Applicants will need to provide as much detail as possible regarding all eligible expenses included in their application. All uses and documentation will be subject to the Authority’s review and approval.”
Furthermore, the applicant must be in good standing with their landlord through an NJEDA-provided certification.
Ineligible Expenses
“Expenses not eligible for reimbursement shall include, but are not limited to:
- Business supplies
- Controlled inventory
- Construction
- Equipment and/or installation fees costing greater than $2,000.00
- Violations, fines, or penalties.”
